AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to ARG. ARG was compared to 807 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making ARG a very profitable company, without any liquidiy or solvency issues. ARG is valued quite cheap, while showing a decent growth score. This is a good combination! Finally ARG also has an excellent dividend rating. These ratings could make ARG a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
ARG had positive earnings in the past year.
In the past year ARG had a positive cash flow from operations.
Each year in the past 5 years ARG has been profitable.
ARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.31%, ARG belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
With an excellent Return On Equity value of 17.61%, ARG belongs to the best of the industry, outperforming 94.05% of the companies in the same industry.
ARG has a better Return On Invested Capital (15.53%) than 97.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARG is below the industry average of 12.23%.
The last Return On Invested Capital (15.53%) for ARG is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROIC | 15.53% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
1.3 Margins
ARG's Profit Margin of 9.51% is amongst the best of the industry. ARG outperforms 92.69% of its industry peers.
In the last couple of years the Profit Margin of ARG has declined.
Looking at the Operating Margin, with a value of 20.77%, ARG belongs to the top of the industry, outperforming 92.69% of the companies in the same industry.
In the last couple of years the Operating Margin of ARG has declined.
With an excellent Gross Margin value of 24.63%, ARG belongs to the best of the industry, outperforming 89.96% of the companies in the same industry.
ARG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% |
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARG is creating value.
The number of shares outstanding for ARG remains at a similar level compared to 1 year ago.
ARG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.30 indicates that ARG is not in any danger for bankruptcy at the moment.
ARG's Altman-Z score of 3.30 is fine compared to the rest of the industry. ARG outperforms 61.71% of its industry peers.
ARG has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
ARG's Debt to FCF ratio of 0.26 is amongst the best of the industry. ARG outperforms 96.16% of its industry peers.
ARG has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, ARG is in line with its industry, outperforming 43.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 3.3 |
ROIC/WACC2.01
WACC7.73%
2.3 Liquidity
ARG has a Current Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
ARG has a Current ratio of 0.91. This is comparable to the rest of the industry: ARG outperforms 41.26% of its industry peers.
ARG has a Quick Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ARG (0.77) is worse than 60.72% of its industry peers.
The current and quick ratio evaluation for ARG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 550.00% over the past year.
The earnings per share for ARG have been decreasing by -18.96% on average. This is quite bad
Looking at the last year, ARG shows a very strong growth in Revenue. The Revenue has grown by 28.25%.
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.98% yearly.
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
3.2 Future
The Earnings Per Share is expected to grow by 39.37% on average over the next years. This is a very strong growth
ARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.44 indicates a reasonable valuation of ARG.
94.18% of the companies in the same industry are more expensive than ARG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, ARG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.46, the valuation of ARG can be described as very cheap.
95.54% of the companies in the same industry are more expensive than ARG, based on the Price/Forward Earnings ratio.
ARG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 5.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 97.65% of the companies listed in the same industry.
98.27% of the companies in the same industry are more expensive than ARG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.31 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
ARG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ARG may justify a higher PE ratio.
A more expensive valuation may be justified as ARG's earnings are expected to grow with 39.37% in the coming years.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y39.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.32%, ARG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.62, ARG pays a better dividend. On top of this ARG pays more dividend than 99.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ARG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 24.22%!
ARG has paid a dividend for at least 10 years, which is a reliable track record.
ARG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.22%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
104.92% of the earnings are spent on dividend by ARG. This is not a sustainable payout ratio.
ARG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP104.92%
EPS Next 2Y39.37%
EPS Next 3YN/A
TSX:ARG (6/13/2025, 7:00:00 PM)
1.88
-0.02 (-1.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners23.88%
Inst Owner ChangeN/A
Ins Owners12.87%
Ins Owner ChangeN/A
Market Cap309.02M
Analysts84
Price Target2.55 (35.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
Yearly Dividend0.16
Dividend Growth(5Y)24.22%
DP104.92%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5%
Min Revenue beat(2)-11.53%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)5
Avg Revenue beat(16)-1.42%
PT rev (1m)0%
PT rev (3m)0.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 5.46 | ||
| P/S | 1.18 | ||
| P/FCF | 5.31 | ||
| P/OCF | 3.97 | ||
| P/B | 2.19 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)0.18
EY9.57%
EPS(NY)0.34
Fwd EY18.31%
FCF(TTM)0.35
FCFY18.83%
OCF(TTM)0.47
OCFY25.19%
SpS1.59
BVpS0.86
TBVpS0.84
PEG (NY)1.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROCE | 28.1% | ||
| ROIC | 15.53% | ||
| ROICexc | 19.28% | ||
| ROICexgc | 19.78% | ||
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% | ||
| FCFM | 22.22% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
ROICexc(3y)10.81%
ROICexc(5y)N/A
ROICexgc(3y)11.1%
ROICexgc(5y)N/A
ROCE(3y)15.09%
ROCE(5y)N/A
ROICexcg growth 3Y-6.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.66%
ROICexc growth 5YN/A
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
F-Score9
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 62.58% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 31.48 | ||
| Cash Conversion | 90.71% | ||
| Profit Quality | 233.62% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.3 |
F-Score9
WACC7.73%
ROIC/WACC2.01
Cap/Depr(3y)56.05%
Cap/Depr(5y)50.06%
Cap/Sales(3y)7.03%
Cap/Sales(5y)5.9%
Profit Quality(3y)227.23%
Profit Quality(5y)233.17%
High Growth Momentum
Growth
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1739.14%
EBIT growth 3Y-17.31%
EBIT growth 5YN/A
EBIT Next Year85.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y391.24%
FCF growth 3Y-14.58%
FCF growth 5YN/A
OCF growth 1Y179.11%
OCF growth 3Y-13.96%
OCF growth 5Y43.83%